Demonetisation or exchange of currency? Withdrawal of Rs 2000 notes explained
The explainer issued by the government tries to dispel misgivings about the recent withdrawal of Rs 2000 denomination.
CHENNAI: The announcement of the Union Government to withdraw of Rs 2000 notes received minor to zero response from the common persons as the denomination long went out of use from them. However, this decision to "demonetise" was reprimanded by the opposition parties calling it another "failure" after the earlier demonetisation in 2016.
The explainer issued by the government tries to dispel misgivings about the recent withdrawal of Rs 2000 denomination.
Reason for floating the tender of Rs 2000 was delineated. It was stated that the decision was made to meet the currency requirements following the withdrawal of the legal tender status of Rs 500 and Rs 1000 notes. The gradual fulfillment of this objective has resulted in halting the printing of Rs 2000 banknotes and now it's being withdrawn, it further stated.
The statement busts four myths regarding this monetary decision. The first myth it busts is the legal status of Rs 2000 notes if exchanged after September 30, 2023, the statement reads that the currency notes will still be legal tender after the said date.
The government responds to the second myth claiming that the exchange can only happen in the account-holding bank of an individual, stating that any bank could be approached with a currency limit of upto Rs 20,000 at a time. The third myth of fee payment for exchange has been junked with the government saying this facility is absolutely free of cost.
The myth of demonetisation, deriving its "authenticity" from several politicians, was dismissed stating that this was only an "exchange of currency" into smaller denominations and not a "demonetisation."
Visit news.dtnext.in to explore our interactive epaper!
Download the DT Next app for more exciting features!
Click here for iOS
Click here for Android
